The mining company Antofagasta plc, of the Luksic group, reported this Thursday that its revenues fell 15.3% to US $ 2,139 million in the first semester compared to the same period of the previous year, mainly due to the decrease in the price of copper as a result of the effect of the coronavirus crisis on world markets.
“After the Covid-19 outbreak and its impact on the markets, the copper price was 12.5% lower compared to the same period last year and this affected our revenues”, Explained Iván Arriagada, executive president of Antofagasta plc.
Regarding the evolution of the copper market in recent days, After the metal managed to break above $ 3 a pound for the first time in more than two years, Arriagada pointed out that “We have seen a price increase, which is positive. However, we do not know to what extent it is sustainable, since it probably reflects the high volatility and uncertainty prevailing in world markets regarding the evolution of the pandemic in copper producing countries. Therefore, we must observe it with caution ”.
But he added that “without prejudice to this, our long-term projections remain favorable for copper due to the role it is called to play in transportation and clean energy.”
The executive indicated that “despite the challenges posed by the health emergency, the mining group had a solid operating and cost performance, with a copper production of 371,700 tons, with sales volumes that fell only 2% compared to the same period 2019 and with a decrease of 6% in costs ”.
Due to the measures to prevent the spread of contagions, the mining company has been operating with approximately two-thirds of the workforce at work, and the rest in quarantine or working remotely.
Regarding the growth projects of Los Pelambres, Centinela and Zaldívar, those that were suspended when the health emergency began, Arriagada indicated that it is expected to progressively resume construction, integrating new health protocols to reduce the risks of contagion by Covid-19.
It is worth mentioning that the six-month suspension of the Complementary Infrastructure Project of Minera Los Pelambres it will entail an additional cost of approximately US $ 50 million.
Regarding the projections for the rest of the year, Arriagada confirmed that, according to the company’s estimates, the group’s production will be in the lower part of the original range of 725 thousand to 755 thousand tons, with a net cash cost of US $ 1 , 20 per pound of copper.
This, considering that no additional restrictive measures are required to face the pandemic.
“Our exposure to copper, a critical metal for a modern low-carbon economy, our solid financial and operational position, together with our portfolio of growth projects, will allow us to generate long-term value for all our stakeholders”, said.
–
